Redwood Trust

What Redwood Trust does

Redwood Trust, Inc. (NYSE: RWT) is a publicly traded specialty finance company and REIT founded in 1994 and headquartered in Mill Valley, California. The company focuses on credit-sensitive investments across the U.S. housing market, organized around three core residential housing platforms: Sequoia (prime jumbo mortgage securitization), Aspire (non-qualified mortgage lending for self-employed borrowers and real estate investors), and CoreVest (business-purpose lending for rental housing investors). Complementary businesses include Redwood Investments (a portfolio of assets sourced through the three platforms) and RWT Horizons (a unified technology and AI platform supporting internal operations and ecosystem investments). Customers span institutional investors (pension funds, insurance companies, and asset managers) purchasing securitized product, mortgage originators seeking capital and distribution, and individual borrowers in prime jumbo, non-QM, and rental-housing segments.

Redwood makes money through a hybrid of transaction-based and recurring economics. Mortgage banking activities generate gains on loan sales and securitization revenues across the Sequoia, Aspire, and CoreVest platforms, while the housing credit investment portfolio generates interest income, dividends, and fair-value changes on retained securities. As a REIT, the company distributes at least 90% of REIT taxable income to shareholders, currently paying a $0.18 quarterly common dividend (12.6% annualized yield) and a $0.625 quarterly Series A preferred dividend. The go-to-market combines direct institutional sales, third-party securitization, joint ventures (notably the $8 billion Castlelake purchasing-power partnership), and publicly traded equity.

The technology stack centers on the RWT Horizons platform, with operational AI embedded through the AgenTeq workflow system (2,500+ workflows and 200,000+ AI queries as of March 2026). Sequoia closed an inaugural $482 million medical-professional loan securitization (SEMT 2026-MED1) and Aspire closed an inaugural $391 million non-QM securitization (SPIRE 2026-1) in Q1 2026. Q1 2026 GAAP revenue was $63.9 million against record mortgage banking production of $8.5 billion (up 17% sequentially), with cost per loan at 18 basis points and full-year 2025 Return on Capital for Mortgage Banking at 26%.

Name

Redwood Trust

Legal name

Redwood Trust, Inc.

Website

https://redwoodtrust.com

Company type

Public

Founded year

1994

Operating status

Operating

Headcount range

251–500 employees

Short description

Redwood Trust is a publicly traded specialty finance REIT that originates, securitizes, and invests in U.S. residential housing credit through three platforms — Sequoia (prime jumbo), Aspire (non-QM), and CoreVest (business-purpose) — serving institutional investors, mortgage originators, and underserved borrower segments.

Ownership category

akta.pro rank

Product category

Specialty Finance / Residential Mortgage Banking

NAICS

Mortgage and Nonmortgage Loan Brokers (522310), Trusts, Estates, and Agency Accounts (52592)

SIC

Mortgage Bankers & Loan Correspondents (6162), Real Estate Investment Trusts (6798)

akta.pro primary industry

Central Securities Depository (CSD) & Securities Settlement Services (FSAAAOAD)

Keywords

• Residential mortgage securitization
• Housing credit investments
• Non-qualified mortgage lending
• Business purpose lending
• Specialty finance

Headquarters

HQ city

Mill Valley

HQ country

United States

HQ region

North America

Offices5 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Operations, Personnel, Technology or R&D, Infrastructure

Revenue model

1. Mortgage Banking Activities: Revenue generated from originating, acquiring, and securitizing residential mortgages through Sequoia, Aspire, and CoreVest platforms. Includes gains on loan sales, securitization revenues, and servicing-related income.
2. Housing Credit Investments: Returns from investment portfolio composed of residential, business purpose and multifamily investments sourced through the company's operating platforms. Includes interest income, dividend income, and fair value changes on retained securities.
3. Dividend Income to Shareholders: As a REIT, Redwood distributes at least 90% of annual REIT income to shareholders as dividends. Common stock dividend of $0.18 per share (12.6% annualized yield) and Series A preferred dividend of $0.625 per share.

Pricing tiers

Go-to-market motion2 records

Distribution channels4 records

Marketing channels6 records

Core offering

Redwood Trust is a specialty finance company that originates, acquires, and securitizes residential mortgage loans through its three core platforms: Sequoia (prime residential mortgage securitization), Aspire (non-qualified mortgage lending for self-employed borrowers and real estate investors), and CoreVest (business purpose lending for rental housing investors). The company packages these loans into asset-backed securities sold to institutional investors, while retaining subordinated and interest-only securities in its consolidated investment portfolio.

Product overview

Redwood Trust operates as a specialty finance company offering a platform-plus-modules architecture centered on three core residential housing-focused operating platforms: Sequoia, Aspire, and CoreVest, alongside complementary Redwood Investments portfolio and RWT Horizons technology platform. Sequoia handles residential mortgage securitization for prime-quality loans. Aspire provides non-QM lending for self-employed borrowers and real estate investors. CoreVest focuses on business purpose lending for rental housing investors. Redwood Investments manages assets sourced through these platforms, while RWT Horizons drives internal AI innovation and strategic technology investments.

Differentiator

Problem solved

Functional benefit

Products and services

• Sequoia Residential Mortgage Securitization Platform Acquires prime-quality residential mortgage loans and creates/issue asset-backed securities backed by these loans; most senior ABS sold to third-party investors while Redwood retains subordinated ABS and interest-only securities. Designed for prime jumbo mortgage financing and residential mortgage-backed securities investment.
• Aspire Non-QM Lending Platform Non-qualified mortgage platform serving self-employed borrowers and real estate investors who fall outside traditional mortgage parameters. Provides flexible underwriting for non-verified income, complex income structures, and investment property financing. Expanded in early 2025 with $3 billion+ in locked production.
• CoreVest Business Purpose Lending Platform Business purpose lending platform providing financing solutions for rental housing investors, including bridge loans, term loans, and revolving credit facilities for single-family and small multifamily properties.
• Redwood Investments Investment portfolio primarily composed of residential, business purpose, and multifamily assets sourced through Sequoia, Aspire, and CoreVest platforms. Generates interest income, dividend income, and fair value changes on retained securities.

Quantifiable outcome

• Record $8.5 billion mortgage banking volume in Q1 2026, a 17% quarter-over-quarter increase
• +3 more outcomes

Named customers4 records

Segments4 records

Ideal customer profiles4 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature2 records

Partnerships

One partnership is on record.

• CastlelakecoreStrategic or Co-development Partner · 29 April 2026Strategic joint venture creating up to $8 billion in purchasing power for prime jumbo mortgage loans. This capital partnership significantly expands Redwood's Sequoia platform capacity and positions the company to serve a broader range of borrowers and investors in the prime jumbo mortgage market.

Scale indicators14 records

Recent moves7 records

Expansion highlights6 records

Direct peers

• Annaly Capital Management: Large mortgage REIT investing primarily in agency MBS and residential credit. Most directly comparable as a publicly traded mortgage REIT with investment portfolio focus, and Redwood's CFO Brooke Carillo joined from Annaly.
• AGNC Investment: Agency mortgage REIT focused on residential mortgage-backed securities with similar dividend-oriented structure. Comparable as a publicly traded mortgage REIT competing for housing credit investor capital.
• PennyMac Financial Services: Public mortgage banking and servicing company with origination, securitization, and investment activities. Directly comparable in mortgage banking production, securitization execution, and servicing operations.
• loanDepot: Public mortgage originator and servicer focused on retail and partner-channel origination. Comparable in mortgage production volume, securitization execution, and direct-to-consumer distribution.
• Guild Holdings Company: Public mortgage origination company with retail and partner channels. Comparable in mortgage banking production, jumbos, and government/agency execution against Redwood's Sequoia and Aspire flows.
• Invesco Mortgage Capital: Mortgage REIT investing in residential and commercial mortgage securities. Comparable as a publicly traded mortgage REIT competing for the same housing credit investor base.

Broad incumbents

• Blackstone Mortgage Trust: Public commercial mortgage REIT managed by Blackstone. Comparable as a Blackstone-backed mortgage REIT but skews to senior commercial loans rather than residential housing credit.
• Starwood Property Trust: Diversified mortgage and real estate finance REIT. Comparable as a public mortgage REIT with residential and commercial credit exposure, though broader in mandate than Redwood's residential focus.
• KKR Real Estate Finance Trust: Externally managed mortgage REIT focused on senior commercial real estate loans. Comparable as a public mortgage REIT with institutional capital backing, though primarily commercial rather than residential.

Emerging players

• Angel Oak Mortgage Solutions: Non-QM mortgage originator and REIT. Most directly comparable to Redwood's Aspire platform with shared focus on non-QM, self-employed, and investor borrowers; emerging scale relative to Redwood.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/RedwoodTrustInc
• Facebookfacebook.com/redwoodtrustinc
• LinkedInlinkedin.com/company/redwood-trust

Revenue estimate

Valuation estimate

Number of profiles

Profiles12 records

Subsidiaries4 records

Funding overview

Funding rounds11 records

Investors1 record

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments10 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Redwood Trust